The Evolution of IPO Bookbuilding

Abstract

We examine trends in the length and intensity of IPO roadshows. The length and number of prospectuses distributed during roadshows systematically decline over the last fifteen years, driven by factors such as technology, regulation, and growth in passive investment. The discrete shift to virtual roadshows during the 2020 COVID-19 period is accompanied by a dramatic decline in roadshow length and a small decline in prospectus distribution. Overall, we document a transition to a more expedited IPO bookbuilding and marketing process. This transition is more gradual than in the follow-on market but is accelerated by COVID-19.

Emily Kim

Assistant Professor of Finance

My research interests cover a variety of topics on empirical corporate finance including information dissemination, innovation, initial public offerings, social finance, and labor economics.